Reference no: EM131406931

Case Analysis:

Bringing the Brand to Light by Heide Abelli focuses on the history of the company, its brand, and strategies. The case covers the legacy of the enterprise that from the family owned business turned into the thriving company. Firstly, it is highlighted that Chris Prangel was MBA graduate student who received the company from his father. The enterprise brewed one kind of beer known as "West Virginia beer" that was quite popular among consumers. The company has the enormous legacy in a mature business, it received revenues about 50 million dollars and obtained the top market position among brewers of lager. The brand of the company influenced consumer's choice and decisions since when selecting lagers, ones were guided by beer's taste, price, quality, authenticity, brand image.

It is stated that brand's representation and awareness played the critical role in consumer's decision-making. MMBC invested in a variety of other branding activities to sustain "brand equality" with basic consumers. The case also dwells upon the Mountain Man's competition that could be seen from four points: major and second-tier domestic retailers, import beer enterprises, and specialty brewers. The first producers included the companies who led competition relying on scale effect in production as well as advertising. The second ones consisted of the competitors of medium size that sold their production to distributors and retailers.

Import beer companies were responsible for covering the needs of those beer consumers who were eager to try some new and more flavorful or bitter beer. Specialty brewers were split into four markets: contact breweries, microbreweries, brewpubs, and regional craft breweries. The case also describes the situation at Mountain Man in 2005 when the enormous annual sales of the company decreased to such degree that many breweries had to close. The changes in sale volumes were caused by the transformations in consumer segments when the younger drinkers of 21-27 years of age were the core age group of beer demand.

The important trend in the company was the increase of the "light" beer category that resulted in a big market share and volume sales. The Mountain Man thought that representation of new products would attract beer consumers to both styles of beer. The study and findings on the company's brand product strategies revealed that Mountain Man Lager due to its high quality and authenticity promoted the brand. Furthermore, grass-roots marketing was more effective than traditional advertising in strengthening beer brand awareness. Besides, blue collar clients showed loyalty to the brand and represented the large scale percentage.

In addition, the Mountain Man faced challenges when product preferences started to change and Chris was quite reassured to make Mountain Man Lager as the core light beer product for sale. The man thought that light beer was quite appealing to the younger audience as well as woman, and fast-growing in the beer category on the market. He assumed that light beer would allow the company to get share in such locations as bars and restaurants.

Chris was assured that MMBC brand would be recognized by the network of the local light beers and enterprise's popularity could increase Mountain Man Lager's sales. However, others did not support him for launching this product, fearing that it will negatively influence on the sales and profits. Despite controversies, Chris developed the formal plan to embark on the project and showed it to his father.

He took into account the revenues base, financial projections, market share for the regional light beer to define possible success or failure of his plan. One of the alternative solutions to the problem would be to launch Mountain Man Light. It would help to attract more customers and does not require to invest in plant/equipment due to the excess capacity. Nonetheless, it has some disadvantages, such as damaging the brand image and the increased competition. Besides, the company can expand the geography of brand presence that would help to boost sales in the short term.

The best alternative solution to the problem of the decrease in sales is to launch the second version of Lager under the young image. It will increase the bargaining power of the company, differentiate the company from its competitors, and led to the new inflow of customers. Probably, the only disadvantage of this option is that it would soften "miner workers image" of the company.